Corruption probe allegations hit Loto-Quebec VP

Pierre Bibeau testifies before the Gomery Commission Monday, April 25, 2005 in Montreal. THE CANADIAN PRESS/Paul Chiasson

MONTREAL — Another career has been sidelined by the barrage of allegations at Quebec’s corruption inquiry — with the latest fallout Wednesday affecting a senior executive at the provincial gaming corporation.

Pierre Bibeau, a prominent organizer in the provincial Liberal party, has been temporarily reassigned from his job as a vice-president at Loto-Quebec while he fights to clear his name.

Bibeau is alleged to have solicited and received a $30,000 cash donation from a former construction company boss for a fundraiser featuring his former spouse, who was then Quebec’s environment minister. A witness has testified that the transfer took place inside the gaming corporation’s offices.

In a statement, the Crown corporation announced Bibeau had agreed to the reassignment. Bibeau was in charge of public affairs and communications.

“(Bibeau), like any other citizen, enjoys the presumption of innocence, and he has in a statement strongly condemned the allegations of the witness against him,” Loto-Quebec said in a statement.

His reassignment comes one day after construction magnate Tony Accurso announced his retirement and after the inquiry’s chief counsel stepped aside over what he described as the appearance of a conflict of interest.

Someone else accused of wrongdoing at the inquiry is fighting to clear his name.

Montreal’s former city manager Robert Abdallah has called a news conference for Thursday to address allegations about a $300,000 kickback allegedly destined for him.

He is expected to refute, “point by point,” the allegations that have been made about him, a statement released Wednesday said.

The names of the two men have emerged amid spectacular allegations of bid-rigging and illegal political financing during eight days of testimony from ex-construction boss Lino Zambito.

Lawyers spent a second day cross-examining Zambito. A lawyer for the City of Montreal was challenging the witness Wednesday to explain memory gaps while seeking inconsistencies in his story.

City lawyer Martin St-Jean questioned Zambito on specifics about a city contract Zambito said Abdallah tampered with through an intermediary — an engineer overseeing the work.

Zambito said that he never met directly with Abdallah or discussed the matter with him and he doesn’t know if the cash he paid was ever actually turned over to Abdallah.

“There was an engineer who was representing the city who told me that the contract would be authorized if I bought … extra piping,” Zambito insisted.

“I told you what was reported to me by the engineer who is representing the city who is contact with Mr. Abdallah.”

A number of city employees and the mayor’s party were accused by Zambito of taking kickbacks on contracts. But the ex-construction boss has come up short occasionally when pressed for specifics.

For example, Zambito could not put a dollar figure on the three per cent cut of rigged contracts that he allegedly paid to Mayor Gerald Tremblay’s Union Montreal party through a middleman, Nicolo Milioto.

On the subject of local engineers and planners who were allegedly on the take, the city lawyer questioned Zambito about the numbers and amounts paid. This was after Zambito had stated an engineer claimed a cut on inflated costs, while another took one per cent of the value of rigged contracts.

Zambito said the practice was discussed among contractors and, although he never saw anyone else pay, he insisted he paid in cash. He said the exchanges took place in various locations around town, without witnesses.

“It was the rule,” Zambito said.

Zambito couldn’t say how many times he’d worked with different city employees that he’d named.

St-Jean expressed frustration that the reputation of city employees had been tarnished while Zambito couldn’t provide more specific information.

“It’s easy to throw names out there but, at some point, you have to come back with solid details,” St-Jean told Zambito.

The commission chair appeared to defend the witness.

“In an inquiry, you have to start somewhere and the evidence will come gradually over time,” France Charbonneau said.

Earlier in his testimony, Zambito said that certain companies, including his own, operated as a cartel.

He testified that these companies colluded to drive up the cost of contracts with a 2.5 per cent commission going to the Italian Mafia on rigged contracts.

He has also said that, in 2005, he began paying the equivalent of three per cent in kickbacks to the ruling political party in Montreal. Over a longer period, he said he was paying additional bribes to city engineers and bureaucrats.

He has also said that he’s heard that a 2.5 per cent cut of contracts in Laval, north of Montreal, went directly to that city’s mayor, but he never paid that amount himself.

Zambito also has admitted to illegally funding political parties at the provincial level. The inquiry says it will not explore whether such wrongdoing occurred at the federal level.

None of Zambito’s allegations have been proven in court. As many as half-dozen lawyers could choose to cross-examine Zambito.